China to offer Taliban tariff-free trade as it inches closer to isolated resource-rich regime

BEIJING, China — China will offer the Taliban tariff-free access to its vast construction, energy and consumer sectors, Beijing’s envoy to Afghanistan said on Thursday, as the ailing resource-rich but diplomatically-isolated regime looks to build up its markets.

Beijing has sought to develop its ties with the Taliban since they took control of Afghanistan in 2021, but like all governments has refrained from formally recognizing the Islamic fundamentalist group’s rule amid international concern over its human rights record and those of women and girls.

But the impoverished country could offer a wealth of mineral resources to boost Beijing’s supply chain security although it risks becoming a haven for militant groups threatening China’s Xinjiang region and huge investments in neighboring Pakistan.

Selling Afghanistan’s lithium, copper and iron deposits to feed China’s enormous battery and construction industries would help the Taliban prop up their economy, which the U.N. says has “basically collapsed,” and provide a much needed revenue stream as the country’s overseas central bank reserves remain frozen.

“China will offer Afghanistan zero-tariff treatment for 100% tariff lines,” Zhao Xing, Chinese ambassador to Afghanistan, wrote on his official X account late on Thursday, above a photo of him meeting acting deputy prime minister Abdul Kabir.

Afghanistan exported $64 million worth of goods to China last year, according to Chinese customs data, close to 90% of which was shelled pine nuts, but the Taliban government has said it is determined to find foreign investors willing to help it diversify its economy and profit from its minerals wealth.

The country exported no commodities to China last year, the data shows, but Zhao has regularly posted photos of him meeting Taliban officials responsible for mining, petroleum, trade and regional connectivity since his appointment last September.

“In the Horn of Africa, China’s Special Envoy Xue Bing said that the best way to resolve security and terrorism challenges is through economic development. I think they are bringing that same mindset to Afghanistan,” said Eric Orlander, co-founder of the China-Global South Project.